How Are Some Indie Designers Defying The Luxury Slowdown?

Without mincing words, it is widely known that the luxury industry is grappling with what is considered to be the worst downturn since the Great Recession of the early 2000s.

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What was once a boom seen across different designer product categories—much of which was spurred by a sudden yearning to make up for lost shopping time after the Covid-19 pandemic—has now cooled off across the world. You couldn’t flip through a newspaper or a business debrief without seeing foreboding reckonings on revenue dip, sluggish sales profits and a general wariness and fatigue from consumers playing out on the margin sheets of big fashion houses. Consumers who perceive the price hikes without a similar increase in quality might be concerned and feel further alienated if big labels decide on further price increments in a soft global market, and that’s where they might tighten their pockets.

“Luxury fashion has become more ubiquitous over the last decade—largely thanks to the overexposure it has been given on social media from influencers showing off their ‘aspirational’ lives,” says Anton Reyniers, head of strategy at We Are Social’s Singapore arm, and who counts Chopard, Boss and Van Cleef & Arpels amongst the agency’s glittering list of clientele. “It has begun to lose its shine. A look at the comment section of any influencer garishly showing off their expensive wares and you’ll quickly spot feedback saying that this is not reading the room in regards to the global cost of living crisis, or it’s not actually that aspirational anymore.”

Reyniers adds that demand for goods that were once built upon the promise of exclusivity now means that product availability has become more widespread, thereby embodying the antithesis of luxury.

Yet, in spite of the general gloom that hangs over the industry, is there a bright spot for younger challenger brands to find their footing amidst the changing tides?

In a 2024 market survey by luxury lifestyle distributor Bluebell group, they found that over 60 percent of polled consumers across different Asian countries highlighted that they are likely to patronise lesser-known niche brands who are able to offer the same great style and quality that is synonymous with heavyweight players. In the same report, Hong Kong has already seen such evidence as shoppers within the market posted the biggest increases in goods purchased from lesser-known and smaller brands across fashion, watches and jewellery as well as accessories categories.

Where brands are cautious with launching in new markets, Jacquemus has brought its line of hit bags and Instagram-friendly clothing out of its Parisian store and into new markets like the United States and the United Kingdom. In a short span of a few months, Simon Porte Jacquemus cut the ribbons to his swanky new addresses in New York and London.

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In spite of being in the market for 16 years, Jacquemus still very much retains its status as a challenger brand. It’s one of the few brands where the majority stake is held by its founder, and it’s bent on doing things its own way. The French label has gone viral several times for things like its gargantuan sun hats, using AI to portray its iconic Chiquito bag as a life-sized bus and giving away free purses as part of its store opening celebrations. Just last month, it inked a deal with L’Oréal to kickstart a beauty partnership and gave L’Oréal a minority stake in the brand.

“I value my independence,” Jacquemus told Le Figaro in October. “I want to pass down the company to my children, but I need to break the glass ceiling by finding the right partner who will remain a minority shareholder.”

In China, Chopova Lowena is also seeing massive success. The eight-year-old brand was founded by Emma Chopova and Laura Lowena, both of whom graduated from Central Saint Martins, and are best known for their carabiner-hooked kilts that have gripped celebrities and TikTokers across the world.

These pleated kilts have gone on to enamour mainland Chinese shoppers, with over 5 million people reading up on the brand on Xiaohongshu, and in spite of a four-digit price-tag, continue to sell out across the interwebs. If anything, the popularity of Jacquemus’ Chiquito bags and Chopova Lowena’s kilts only underscore the importance that younger labels ought to zero in on their hero products, and strike while the metal is hot.

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In an email interview, Hiromi Yu has also seen customers react positively to younger fashion brands amidst the uncertain landscape of luxury. Yu, who is the founder of the Australian-based multi-label luxury boutique Marais, which stocks the likes of Khaite, Balenciaga and Coperni to name a few, chalks it up to understanding the relationship between shopper and product, and homing in on the lowest hanging fruits: your top-selling merch.

“We’ve seen that brands like Sacai, Entire Studios and Amiri do superbly well with our audience, because they offer competitive pricing and do not compromise on the quality,” Yu says. “They maintain a price growth by justifiably increasing the material and labour cost, and they are agile in renewing or increasing their best-sellers whilst dialling back on their weakest products. They have also been bringing back best-performing pieces every alternate season, thereby generating desire from customers and stimulating the shopper’s appetite.”

Aside from driving sales, hero products also help a brand stand out within an incredibly competitive and crowded room. This, in turn, drives that commercial pot of gold that every business leader aims to capture, but beyond success at the cash register, it allows shoppers to develop greater brand recall when they’re on the market for their next purchase.

“We rely heavily on organic growth and organic marketing. It’s less about prices being competitive, more about the products being unique,” says Wei Lin, founder of the popular knitwear brand PH5. Lin is the daughter of a knitwear manufacturer and since 2014, PH5 has become known for its recognisable line of colourful, body-con knits that are stocked in stores like Selfridges and SocietyA, and have enamoured stars like Gemma Chan, Taylor Swift and Kate Hudson. While the creative designs are driven by Zoe Champion, Lin oversees the brand as its founder and CEO.

“We are not in a rush to double or triple our revenue every year, and we are not throwing millions of dollars in marketing. We pretty much just do our own thing at our own pace. Whether or not we sell a lot doesn’t affect our design process or design choices. Because of that, we stay unique and tasteful. If you are looking to buy a PH5 piece, there is almost no substitute in the market for what we offer,” she explains.

This season, PH5 will collaborate with local footwear giant CHARLES & KEITH on a series of shoes that echo the former’s love of fun, quirky and colourful fashion. While there have been no official announcement to the release date of the PH5-designed collection at press time, there’s no denying that this tie-up plays to the power of community-building that emerging designers have been known to do. Could one of the keys to solving this conundrum therefore lie in community marketing?

Reyniers thinks that there is merit to this. After all, he points out, we live in a world that is increasingly segmented and this in turn drives the yearning of togetherness amongst consumers today. And if you’re able to transform your customers into ambassadors, that’s more effective than any influencer or ad could be in expanding your reputation.

“Exclusivity and collectible culture can help drive brand fandom and community,” he elaborates. “It’s about building excitement, fostering a sense of belonging, and turning customers into passionate fans.”

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According to Jing Daily, the Firenze-based Swedish brand AVAVAV continues to dominate social conversations in the APAC region, thanks to its brand of humour-first fashion with its own devoted fans. Founded in 2017, the brand’s runway shows have become fodder for easy virality, with past outings showing giant talon-like shoes or clothing disintegrating off the models’ bodies. Never mind that these antics would raise eyebrows with traditionalist observers, because humour has helped the brand amass over 70 million in reach on Xiaohongshu with netizens engaged in a communal love for its the clothing and the shows. As it is, AVAVAV has secured more than 20 stockists alone in China and is also looking at conducting more offline engagement activities.

“It’s fascinating to consider the landscape for indie fashion brands amidst a luxury downturn. It feels like a real moment of testing, but what strikes me most is how crucial authenticity becomes in times like these,” Shanthi Jeuland, managing director at boutique PR and strategy agency COCO tells us. Under COCO, Jeuland has worked with the likes of Dolce&Gabbana, Panerai and Gaurav Gupta. “Consumers aren’t just looking for something to wear, they’re looking for a connection, a story they can believe in. That’s where these younger brands have a real edge: they often are the story with their passion and values. I think about the independent designers I admire, and what they all have in common is this deep sense of purpose in building something meaningful. And that resonates well, especially when people are more discerning about where they spend their money.”

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With crisis comes opportunity, and the same can be said with chaos—younger brands should therefore seize the moment for success.

Firstly, the generally smaller operational size that many of these brands have has provided them with a nimble approach when adapting to a volatile market. These challengers can offer shoppers the same bang for less buck, and are able to do it in a way that feels intimate and special, thanks to more exclusive production runs or tantalising hero items. Furthermore, their size also allows them to connect with shoppers in a way that feels authentic and personable, which can easily transform shoppers into brand loyalists who are able to sing your praises to other similar-minded customers outside of your own reach.

With all of these and a sprinkling of creative magic, who knows, you might just have a hit brand on your hands.